Rs. 10 lakhs invested at the inception of the fund is grown to Rs. 11.76 crores as of March 31, 2019
UTI Mastershare Unit Scheme is India’s first equity oriented fund (launched in October 1986) and has a track record of wealth creation for over 30 years. UTI Mastershare Unit Scheme has a long-standing track record of uninterrupted annual dividend distribution across all market cycles – be it bearish or bullish.
UTI Mastershare Unit Scheme, an open-ended equity scheme predominantly invests in large-cap companies having a competitive advantage in their respective fields. It follows an investment style of Growth at Reasonable Price (GARP) for stock picking. That means, given the underlying growth in earnings of a company, how much is the reasonable price that one should pay to buy that stock in the portfolio. This approach gives it a framework to buy companies having future earnings growth as well as valuation comfort.
The competitive franchise that UTI Mastershare Unit Scheme looks for is built over a long period of time by companies that are fundamentally strong with control on borrowings, consistent revenue growth, focus on profitability and higher return on capital than the cost of capital and consistent operating cash-flows generation. Such companies generate free cash flows for future expansion and avoid dilution of existing shares. Typically such companies enjoy pricing power for a long period of time.
This combined approach of GARP plus Competitive Franchise enables UTI Mastershare Unit Scheme to invest in companies where,
This, in turn, gives the investors a long term wealth creation opportunity with lower volatility, by owning a portfolio of quality companies.
UTI Mastershare Unit Scheme being categorized as Large Cap Fund, thus has a portfolio of leading well-known companies such as, HDFC Bank, ICICI Bank, Infosys, Tata Consultancy Services, ITC, Larsen & Toubro, Tech Mahindra, Axis Bank, Reliance Industries, Kotak Mahindra Bank, etc., The Top 10 stocks account for over 49% of the portfolio. The Scheme is currently overweight on private sector banks, rural facing NBFC, IT, Industrial Manufacturing and underweight on Energy, Consumer, and Metals as of March 31, 2019.
The Fund has a corpus of over Rs. 5,973 crores with over 5.84 lakh live investor accounts as on March 31, 2019. The Fund aims at securing capital appreciation / or income distribution over the long term, follows a disciplined approach to invest as stated above and has maintained a stream of annual dividends every year since its inception. UTI Mastershare Unit Scheme has distributed a total dividend of more than Rs. 3,000 crore in the last 15 years.
This style pure scheme maintained its large-cap orientation with above 80% in the past for longer periods and will continue to maintain in future too. The scheme has been a steady performer and has lower portfolio churn. On the basis of last one-year performance, the fund features among the top 25% of the schemes in the category. Also, UTI Mastershare Unit Scheme has generated a return (CAGR) of 15.81% against benchmark S&P BSE 100 TRI return of 14.02% since inception as on March 31, 2019. Furthermore, investment amount of Rs. 10 lakhs made in the fund at inception has grown to Rs. 11.76 crores as against Rs. 7.08 crores as per benchmark S&P BSE 100 TRI during the same period, i.e., generating 117 times returns over the last 32 years.
UTI Mastershare Unit Scheme is suitable for those equity investors who are looking to build “core equity portfolio” with the relatively stable and sustainable performance from a large-cap portfolio having quality large-cap companies and also for such investors who would prefer regular dividends and capital appreciation over the long term.
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